Chinese vendors agree on pricing for 5G smartphones

We already knew from OnePlus that 5G smartphones will be more expensive at first compared to similarly specced 4G phones. Initially, it was said that the price difference will be close to $200. But we all know that Chinese manufacturers want to do things cheaper. It is the only way they can stay competitive in this market. So, after a few months of negotiations, engineering and cost estimates, they have a price they can agree on: $74

Chinese brands are going for what they call the “5G+500” formula. This means that a 5G smartphone should not cost more than CNY500 compared to a 4G variant of the phone. This pricing will include the needed chip, antenna and licensing fees. It may seem expensive and a lot of money just for 5G connectivity, but the manufacturers won’t make any profit just from 5G. The modem chip alone costs almost $50 (licensing included), so that means they have less than $30 for the PCB board and antenna. Pricing will most probably decrease in the cumming years.